What I’ve Learned in 40 Years in the Credit Union Industry

I’ve spent the past 40 years of my life working in the credit union industry. In 1980, I was hired as a junior accountant at PenFed Credit Union, and I’ve never left.

At the time, PenFed had already been in existence for 45 years, but it looked a lot different than it does today. It hadn’t issued its first credit card, it hadn’t ventured into mortgage lending and the establishment of the PenFed Foundation was still decades in the future.

Over the next 40 years, I’ve watched millions of our members, and many of their children, go to war. I’ve watched banking go online, the economy rise and crash and rise again, phones get smaller and smaller, and digitization to become the way of future.

In the meantime, I’ve learned a few things about what makes a credit union succeed or fail, and about what it means to build a meaningful career.

1. Steady and managed growth is better than overnight growth.

In the 40 years I’ve been working with PenFed, the organization has grown from thousands of members to over two million members, and our assets have grown from $400 million to over $26 billion. This growth didn’t happen all at once; instead, our growth averages about 10% a year, and it has been gradual and intentional while maintaining the safety and soundness of the institution. During this time period, PenFed continued to increase its net worth ratio, which is currently at almost 11%. This gives members nearly $1 billion of additional protection above the 7% net worth ratio required by law for a credit union to be well capitalized. In 1984, we reached $1 billion in assets; we continued to climb to $10 billion in 2007. There is no overnight path to growth, especially in finance, and even if there were, it probably wouldn’t be the best path.

2. Careers can excel in crises.

Crises can create opportunity. In 1987, we made the conversion from a home-grown member deposit and loan system to a new state-of-the-art system for its time. The transition did not go smoothly, and it gave me the opportunity to apply my accounting skills to take a leadership role in the recovery. I took the initiative to fix the problems, and in 1991, when we did another conversion, I was tasked with leading it. I credit much of my career growth to this opportunity.

3. Visionary leadership is one of the most important things a credit union can have.

Not all CEOs should focus on growth. There have been times in PenFed’s history – during recessions, for example – when our CEOs have acted as a stabilizing force instead, and they were of far better service to the credit union than they would have been if they had forged ahead on new ventures we didn’t need at the time. All CEOs and executive leadership should have a vision for the organization, but that vision will look different in different economic and institutional phases.

4. Don’t underestimate the value of mentorship.

I’ve been fortunate in my career to have good leaders and mentors, dating all the way back to my first supervisor in 1980, who have gone out of their way to help me excel. These mentors encouraged me to keep a positive attitude and think of challenges as opportunities. Now that I’m in a position to be a mentor to others, I take it very seriously. I never set anyone up to fail; I only promote someone if I know they can succeed in the job, and if I can’t provide the right opportunity for them; I work very hard to find them something outside the organization. The other important factor is leading the change. Many people like change but they are afraid to change. They do not realize that change is the only thing permanent in our lives. I was fortunate to help my staff embrace the change.

5. Find meaning in your work.

One of the proudest moments of my career was when I helped establish the PenFed Foundation in 2001, as the Foundation’s first CFO. I feel blessed to have been a part of raising millions of dollars over the years for service members, veterans and their families. I came to the U.S. after earning a graduate degree in India. This country welcomed me and has given me the opportunity to build a family here and thrive in my career, and this would not be possible without our nation’s military community. A meaningful career is not about dollars and cents, it’s about touching people’s lives. If I leave tomorrow, that legacy will be more important than anything else I have accomplished in 40 years.

Shashi Vohra, CPA is senior EVP and president of affiliated businesses at PenFed Credit Union in McLean, Va.